EDP and Cepsa sign an alliance to promote the Andalusian Green Hydrogen Valley
The two companies will jointly study the development of a project of up to 1GW of hydrogen within the Andalusian Green Hydrogen Valley, in Spain;
The agreement also covers the supply of electricity from renewable sources and possible collaboration to produce sustainable marine fuels.
Cepsa and EDP have signed an agreement to work together in the production of green hydrogen on a large scale in the Algeciras Bay, in the Spanish region of Andalusia. Through this alliance, EDP – leader in renewable energies through its subsidiary EDP Renewables, the world's fourth largest producer in this area – joins as a partner in a project to develop up to 1 GW in the Campo de Gibraltar (Cadiz), within the scope of the Andalusian Green Hydrogen Valley, the largest green hydrogen project in Europe promoted by Cepsa.
According to Miguel Stilwell d'Andrade, CEO of EDP, "This agreement with CEPSA is an important milestone for the conversion of EDP's thermal power plant in Los Barrios and to promote industrial decarbonization through green hydrogen, being another step to strengthen the energy independence in Europe."
According to Maarten Wetselaar, CEO of Cepsa, "to accelerate the energy transition it is necessary to seek allies and synergies that allow us to move forward in this process in an agile and competitive manner. With this ambition in mind, today we are signing this agreement with EDP, one of the leading global companies in the production of renewable energies, which will provide us with the electricity we need to produce green hydrogen competitively".
This alliance is part of the ambition of both companies to drive the decarbonization of industry and heavy land, air and maritime transport. The agreement also includes the supply of renewable electricity and the possible collaboration to produce sustainable marine fuels (green ammonia and methanol).
Both EDP and Cepsa, companies with a significant presence in the Bay of Algeciras and a strong commitment to the local community, have the decarbonization of the economy as a priority and seek through this agreement to maximize the complementarities and synergies of their knowledge of the sector, their technical capabilities and the proximity of their facilities. This new alliance is part of Cepsa's 2030 strategy, ‘Positive Motion’, through which the company is becoming a benchmark in the energy transition, leading sustainable mobility in Spain and Portugal and the production of renewable hydrogen and advanced biofuels to promote the decarbonization of its customers, as well as its own activity.
EDP, in its mission to lead the energy transition, has a unique and realistic program of projects in Spain to transform its thermal power plants into sites linked to renewable energies, green hydrogen, energy storage and the flexibility of the electricity system. This agreement will facilitate the conversion of EDP's thermal power plant in Los Barrios (Cadiz) into a green hydrogen plant.
This partnership contributes to several of the Sustainable Development Goals of the 2030 Agenda, such as SDG 7 (Affordable and clean energy), 8 (Decent work and economic growth), 12 (Responsible production and consumption) and 13 (Climate action).